8. Will the company pay me cash in the buy-back programme? If so, in which currency?
It is not unusual for companies to buy shares at fair value. If the company decides to run a buy-back programme, it will announce the price in US$ and winners maybe given the option to be paid in their local currencies. However, the decision remains with the board, and that will be final. Illustrative worked example: Sumit and Sophia won 100k shares as random winners, Sumit lives in New Delhi (India) and Sophia lives in Kuala Lumpur (Malaysia). Assume the Company announced a buy-back programme and determines that the failr fair value of 100,000 shares is $15,000 on 1st June 2022. Sumit and Sophia are both considering selling their shares back to the company. The transaction could take place as below: Assume that exchange rate on the day of the buyback programme is active, is: 1USD = INR 74 (India) 1USD = MYR 4.20 (Malaysia) Assume the price announced by the company to buy 100,000 shares is $15,000. So, the price offered to the winners will be: Sumit = 15,000 x 74 = 1,110,000 Indian Rupees; Sophia= 15,000 x 4.20 = 63,000 Malaysian Ringgit [i] However, the conditions for the buy-back will depend on various factors including the state of the market conditions and company performance. The decision of whether a buy-back is done implemented or not will remain with the Board and will be final